Coach 2014 Annual Report Download - page 7

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TABLE OF CONTENTS
In fiscal 2014, we have reduced the number of both retail stores and total square footage, as we continue to optimize our real estate position. We expect
this trend to accelerate in the next fiscal year with the anticipated closure of approximately 70 retail stores in fiscal 2015, attributable to our Transformation
Plan, as described in Note 3, "Transformation, Restructuring and Other Related Actions." The number of Coach retail stores and their total and average square
footage remained relatively constant in fiscal 2013 when compared from fiscal 2012.




June 29,
2013
June 30,
2012
Retail stores

351
354
Net (decrease) increase vs. prior year

(3)
9
% (decrease) increase vs. prior year

(0.8)%
2.6%
Retail square footage

952,422
959,099
Net (decrease) increase vs. prior year

(6,677)
22,822
% (decrease) increase vs. prior year

(0.7)%
2.4%
Average square footage
2,713
2,709
North American Outlet Stores — Coach's outlet stores serve as an efficient means to sell manufactured-for-outlet product, including outlet exclusives,
and to a lesser extent, discontinued and irregular inventory outside the retail channel. These stores operate under the Coach name and are geographically
positioned primarily in established outlet centers that are generally more than 30 miles from major markets.
Coach’s outlet store design, visual presentations and customer service levels support and reinforce the brand's image. Through these outlet stores, Coach
targets value-oriented customers.
The expansion in the number of North America Coach outlet stores and their total and average square footage is shown in the following table:




June 29,
2013
June 30,
2012
Outlet stores

193
169
Net increase vs. prior year
24
26
% increase vs. prior year
14.2%
18.2%
Outlet square footage
982,202
789,699
Net increase vs. prior year

192,503
140,605
% increase vs. prior year

24.4%
21.7%
Average square footage
5,089
4,673
Over the next few years, we expect to see modest to no growth in outlet store square footage as we continue to optimize our real estate position across
channels by expanding our most productive stores to accommodate a broader expression of lifestyle assortment while also assessing opportunities to close
under-performing stores.
Internet — Coach views its website as a key communications vehicle for the brand to promote traffic in Coach retail stores and department store
locations and build brand awareness. With approximately 76 million unique visits to www.coach.com in fiscal 2014, our online store provides a showcase
environment where consumers can browse through a selected offering of the latest styles and colors. Our e-commerce programs also include our invitation-
only outlet Internet sales site.
North America Wholesale — Coach began as a U.S. wholesaler to department stores and this channel continues to remain a part of our overall consumer
reach. Today, we work closely with our partners to ensure a clear and consistent product presentation. Coach enhances its presentation through the creation of
shop-in-shops with proprietary Coach fixtures within the department store environment. Coach custom tailors its assortments through wholesale product
planning and allocation processes to match the attributes of our department store consumers in each local market. The Company continues to closely manage
inventories in this channel given the highly promotional environment at point-of-sale. The Company has implemented automatic replenishment with major
accounts in an effort to optimize inventory across wholesale doors. Over the next few years, we expect to make significant investment in the elevation of
shop-in-shop environments in this channel.
5